PRESENTATION

Our financial statements are presented in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. We show certain of our financial statements on both a consolidated and a sector basis for our Automotive and Financial Services sectors. Intercompany items and transactions have been eliminated in both the consolidated and sector balance sheets. Where the presentation of these intercompany eliminations or consolidated adjustments differs between the consolidated and sector financial statements, reconciliations of certain line items are explained below in this Note or in related footnotes.

In the opinion of management, these unaudited financial statements reflect a fair statement of the results of operations and financial condition of Ford Motor Company, its consolidated subsidiaries, and consolidated VIEs of which we are the primary beneficiary for the periods and at the dates presented. The operating results for interim periods are not necessarily indicative of results that may be expected for any other interim period or for the full year. Reference should be made to the financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2011 ("2011 Form 10-K Report"). For purposes of this report, "Ford," the "Company," "we," "our," "us" or similar references mean Ford Motor Company, our consolidated subsidiaries, and our consolidated VIEs of which we are the primary beneficiary, unless the context requires otherwise.

We reclassified certain prior year amounts in our consolidated financial statements to conform to current year presentation.

Adoption of New Accounting Standards

Fair Value Measurement. On January 1, 2012, we adopted the new accounting standard that requires us to report the level in the fair value hierarchy of assets and liabilities not measured at fair value in the balance sheet but for which the fair value is disclosed, and to expand existing disclosures. See Note 3 for further disclosure regarding our fair value measurements.

Comprehensive Income - Presentation. On January 1, 2012, we adopted the new accounting standard that modifies the options for presentation of other comprehensive income. The new accounting standard requires us to present comprehensive income either in a single continuous statement or two separate but consecutive statements. We have elected to present comprehensive income in two separate but consecutive statements.

On January 1, 2012, we also adopted the new accounting standards Intangibles - Goodwill and Other, Transfers and Servicing - Repurchase Agreements, and Financial Services - Insurance. The adoption of these new accounting standards did not impact our financial condition or results of operations.

NOTE 1. PRESENTATION (Continued)

Reconciliations between Consolidated and Sector Financial Statements

Deferred Tax Assets and Liabilities. The difference between the total assets and total liabilities as presented in our sector balance sheet and consolidated balance sheet is the result of netting deferred income tax assets and liabilities. The reconciliation between the totals for the sector and consolidated balance sheets was as follows (in millions):



	September 30, 2012			December 31, 2011
Sector balance sheet presentation of deferred income tax assets
Automotive sector current deferred income tax assets	$	2,384		$	1,791
Automotive sector non-current deferred income tax assets	12,097			13,932
Financial Services sector deferred income tax assets (a)	225			302
Total	14,706			16,025
Reclassification for netting of deferred income taxes	(1,180		)	(900		)
Consolidated balance sheet presentation of deferred income tax assets	$	13,526		$	15,125

Sector balance sheet presentation of deferred income tax liabilities
Automotive sector current deferred income tax liabilities	$	12		$	40
Automotive sector non-current deferred income tax liabilities	252			255
Financial Services sector deferred income tax liabilities	1,509			1,301
Total	1,773			1,596
Reclassification for netting of deferred income taxes	(1,180		)	(900		)
Consolidated balance sheet presentation of deferred income tax liabilities	$	593		$	696

__________


(a)	Financial Services deferred income tax assets are included in Financial Services other assets on our sector balance sheet.

NOTE 1. PRESENTATION (Continued)

Sector to Consolidated Cash Flow. We present certain cash flows from wholesale receivables, finance receivables and the acquisition of intersector debt differently on our sector and consolidated statements of cash flows. The reconciliation between totals for the sector and consolidated cash flows for the periods ended September 30 was as follows (in millions):



	First Nine Months
	2012			2011
Automotive net cash provided by/(used in) operating activities	$	4,113		$	6,783
Financial Services net cash provided by/(used in) operating activities	3,624			3,194
Total sector net cash provided by/(used in) operating activities	7,737			9,977
Reclassifications from investing to operating cash flows
Wholesale receivables (a)	1,671			(26		)
Finance receivables (b)	(2		)	68
Consolidated net cash provided by/(used in) operating activities	$	9,406		$	10,019

Automotive net cash provided by/(used in) investing activities	$	(6,086	)	$	1,508
Financial Services net cash provided by/(used in) investing activities	(3,873		)	2,114
Total sector net cash provided by/(used in) investing activities	(9,959		)	3,622
Reclassifications from investing to operating cash flows
Wholesale receivables (a)	(1,671		)	26
Finance receivables (b)	2			(68		)
Reclassifications from investing to financing cash flows
Maturity of Financial Services sector debt held by Automotive sector	(201		)	—
Elimination of investing activity to/(from) Financial Services in consolidation	(794		)	(2,589		)
Consolidated net cash provided by/(used in) investing activities	$	(12,623	)	$	991

Automotive net cash provided by/(used in) financing activities	$	233		$	(6,276	)
Financial Services net cash provided by/(used in) financing activities	(1,610		)	(5,527		)
Total sector net cash provided by/(used in) financing activities	(1,377		)	(11,803		)
Reclassifications from investing to financing cash flows
Maturity of Financial Services sector debt held by Automotive sector	201			—
Elimination of investing activity to/(from) Financial Services in consolidation	794			2,589
Consolidated net cash provided by/(used in) financing activities	$	(382	)	$	(9,214	)

__________

(a)

In addition to the cash flow from vehicles sold by us, the cash flow from wholesale finance receivables (being reclassified from investing to operating) includes financing by Ford Credit of used and non-Ford vehicles. 100% of cash flows from wholesale finance receivables have been reclassified for consolidated presentation as the portion of these cash flows from used and non-Ford vehicles is impracticable to separate.


(b)	Includes cash flows of finance receivables purchased/collected by the Financial Services sector from certain divisions and subsidiaries of the Automotive sector.

NOTE 1. PRESENTATION (Continued)

Venezuelan Operations

At September 30, 2012 and December 31, 2011, we had $540 million and $301 million, respectively, in net monetary assets (primarily cash and receivables partially offset by payables and accrued liabilities) denominated in Venezuelan bolivars. These net monetary assets included $627 million and $331 million in cash and cash equivalents at September 30, 2012 and December 31, 2011, respectively. As a result of regulation of foreign currency exchange in Venezuela, the official exchange rate of 4.3 bolivars to the U.S. dollar is used to re-measure the assets and liabilities of our Venezuelan operations for GAAP financial statement presentation. The Venezuelan government also controls securities transactions in the parallel exchange market. Our ability to obtain funds in the parallel exchange market has been limited. For any U.S. dollars that we obtain at a rate less favorable than the official rate, we realize a loss for the difference in the exchange rates at the time of the transaction. Based on our net monetary position at

September 30, 2012, a devaluation equal to a 50% change in the official bolivar exchange rate would have resulted in a balance sheet translation loss of approximately $180 million. Continuing restrictions on the foreign currency exchange market could affect our Venezuelan operations' ability to pay obligations denominated in U.S. dollars as well as our ability to benefit from those operations.

Long-Lived Asset Impairment Testing

During the third quarter of 2012, operating profits and cash flow from operations outside of North America remained under pressure. In particular, industry sales volume for the markets we track in Europe declined significantly in recent years with only modest improvement expected by mid-decade, suggesting that current changes in the European business environment are more structural than cyclical in nature. Against this backdrop, we determined that it was appropriate to test for impairment the long-lived assets of our Ford Europe segment. Using our economic and business projections, including an assumption of an 8% operating margin for Ford Europe over the longer term, we determined that the carrying value of our long-lived assets at September 30, 2012 did not exceed fair value. If in future quarters our economic or business projections were to change as a result of our plans or changes in the business environment, we would undertake additional testing as appropriate, which could result in an impairment of long-lived assets.